NTPM earnings may hit inflection point on higher capacity


  • Corporate News
  • Wednesday, 06 May 2020

RHB Research also noted that with MCO-regulations becoming more relaxed, production levels are anticipated to normalise.

PETALING JAYA: NTPM HOLDINGS BHD’s earnings may hit an inflection point in the fourth quarter ended April 30, on increased capacity and margins from lower raw material prices.

The new production capacity that is being ramped up is at its new Vietnam plant and RHB Research said tissue paper product usage is likely to increase even after the Covid-19 pandemic ends.

“NTPM’s operations saw no major disruption during the movement control order (MCO) period, ” RHB Research said. The company saw a spike in demand in its key markets, including in Malaysia, Singapore, and Australia.

“This began in February and March, when the virus began spreading outside of China. With a mandated 50% of its workforce operating its plants during the MCO, the company’s Malaysian operations were running at a 70% utilisation rate, ” it said.

RHB Research also noted that with MCO-regulations becoming more relaxed, production levels are anticipated to normalise.

On the lower raw material prices, it said NTPM has stocked up the pulp inventory aggressively for usage until the end-2020 at an average price of US$520 per tonne.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

NTPM , earnings , hit , inflection point , higher capacity ,

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Across the site